We came across a bullish thesis on nLIGHT, Inc. on X.com by pennycheck. In this article, we will summarize the bulls’ thesis on LASR. nLIGHT, Inc.'s share was trading at $31.20 as of September 18th. Semiconductor l-n-r2tVRjxzFM8-unsplash The company continues to strengthen its position in the defense technology market through major contract wins and operational execution. Its $171 million HELSI Phase 2 program to develop a 1-megawatt direct energy laser, the most powerful known laser weapon globally, is ...

nLIGHT, Inc. (NASDAQ:LASR) is one of the 14 Small Publicly Traded Semiconductor Companies to Invest in Now. On September 15, Cantor Fitzgerald increased the price target for nLIGHT, Inc. (NASDAQ:LASR) from $27.50 to $33.50 while maintaining an Overweight rating. The update came after meetings with nLIGHT, Inc.’s (NASDAQ:LASR) CEO and Vice President of Corporate Development. Cantor Fitzgerald felt more positive about the company’s near- and medium-term outlook following these discussions. Cantor Fitzgeral ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: nLight (LASR) - nLight currently holds a Momentum Style Score of B, indicating potential for solid momentum investing [3]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4]. Performance Metrics - Over the past week, nLight shares increased by 8.75%, outperforming the Zacks Electronics - Semiconductors industry, which rose by 4.89% [6]. - In a longer timeframe, nLight's shares have risen by 60.31% over the past quarter and 202.78% over the last year, significantly outperforming the S&P 500's gains of 12.64% and 18.69%, respectively [7]. Trading Volume - The average 20-day trading volume for nLight is 887,345 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - Recent earnings estimate revisions for nLight show a positive trend, with three estimates moving higher and none lower, raising the consensus estimate from -$0.28 to $0.06 over the past 60 days [10]. - For the next fiscal year, three estimates have also moved upwards, indicating a favorable outlook [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, nLight is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a compelling option for investors seeking short-term gains [12].

Core Viewpoint - nLIGHT (LASR) is experiencing strong growth driven by demand in the aerospace and defense sectors, while IPG Photonics (IPGP) is facing challenges due to weak industrial demand, particularly in China [1][9][21]. nLIGHT Overview - nLIGHT specializes in high-power semiconductor and fiber lasers, targeting markets such as aerospace, defense, and industrial cutting [3]. - The company reported record revenues of $40.7 million from the Aerospace and Defense (A&D) sector in Q2 2025, a 49% increase year over year, contributing to 66% of total sales [4]. - Overall revenues for nLIGHT grew 22% year over year to $61.7 million, with a non-GAAP EPS of 6 cents, a significant improvement from a loss of 10 cents in the previous year [4]. - The defense segment saw a remarkable 74.5% year-over-year growth, bolstered by the HELSI-2 program, a $171 million U.S. DoD contract [6]. - nLIGHT's management raised its full-year A&D growth outlook to at least 40%, up from 25% earlier, with projected revenue growth of 18% and 4.7% for 2025 and 2026, respectively [7][9]. IPG Photonics Overview - IPG Photonics is a leading player in the fiber laser industry, with a strong market share in industrial applications [10]. - The company’s CROSSBOW laser system enhances its position in advanced industrial applications, targeting sectors like automotive and aerospace [11]. - However, IPG Photonics reported a 3% decline in Q2 revenues to $250.7 million and a 42% drop in non-GAAP earnings to 30 cents per share, reflecting challenges in demand and competition [14]. - The Zacks Consensus Estimate indicates a revenue decline of 2.2% for 2025, with a modest increase of 6.4% projected for 2026 [14]. Price Performance and Valuation - Year-to-date, nLIGHT shares have surged 173.3%, while IPG Photonics shares have only increased by 9.9% [16]. - nLIGHT is trading at a forward sales multiple of 5.91X, compared to IPG Photonics' 3.38X, with the premium for nLIGHT justified by its lesser exposure to the weak Chinese market [18]. Conclusion - nLIGHT is positioned favorably with accelerating momentum in defense programs and rapid earnings growth, while IPG Photonics is facing near-term revenue pressures [21][22].

Core Insights - nLIGHT (LASR) shares have increased by 58.2% over the past three months, significantly outperforming the Zacks Electronics - Semiconductors industry's growth of 19.9% [1][2] - The company's strong second-quarter results for 2025, along with positive forward guidance and growth in the Aerospace and Defense (A&D) segment, have boosted investor confidence in its long-term prospects [1][5] Financial Performance - nLIGHT's second-quarter 2025 revenues rose by 22% year over year to $61.7 million, exceeding the Zacks Consensus Estimate of $55 million [5] - The company reported a non-GAAP EPS of 6 cents, a notable improvement from a loss of 10 cents in the same quarter last year, and better than the consensus estimate of a loss of 9 cents [5][9] - A&D end market revenues reached a record $40.7 million, up 49% year over year, now constituting 66% of total sales compared to 54% a year ago [6][9] A&D Segment Growth - The A&D segment is identified as the primary growth driver, with defense product revenues growing by 74.5% year over year, supported by shipments into the HELSI-2 program [8][10] - The HELSI-2 program is a $171 million U.S. DoD contract aimed at developing a 1-megawatt high-energy laser by 2026, indicating strong future revenue potential [8] - Management has raised its full-year A&D growth outlook to at least 40%, up from 25% previously, reflecting confidence in ongoing demand [10] Margin Improvement - nLIGHT's product gross margin improved to 38.5%, up from 30.3% a year ago, driven by a defense-heavy sales mix [13][14] - Factors contributing to margin growth include higher shipment volumes, a favorable business mix, and effective manufacturing execution [14] - For the third quarter, management has guided product gross margin to be in the range of 32-36%, indicating a more cautious outlook [15] Valuation Metrics - nLIGHT is currently trading at a forward 12-month price-to-sales (P/S) ratio of 5.97X, which is lower than the industry average of 9.01X [16][18] - Compared to peers like Broadcom, Ambarella, and Allegro MicroSystems, nLIGHT's P/S multiple is also lower, suggesting a potentially undervalued position [18] Investment Recommendation - The combination of record A&D revenues, margin improvements, and discounted valuation positions nLIGHT as a compelling investment opportunity [19] - Successful execution on key defense programs will be crucial for achieving the projected 40% growth in A&D revenues this year [19]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1] Company Summary: nLight (LASR) - nLight currently has a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company holds a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] - Over the past week, LASR shares increased by 2.67%, significantly outperforming the Zacks Electronics - Semiconductors industry, which rose by only 0.1% [5] - In a longer timeframe, LASR's shares have surged by 63.36% over the past quarter and 141.21% over the last year, compared to the S&P 500's gains of 9.8% and 15.8%, respectively [6] - The average 20-day trading volume for LASR is 1,024,738 shares, indicating a bullish trend as the stock is rising with above-average volume [7] Earnings Outlook - In the past two months, three earnings estimates for LASR have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from -$0.28 to $0.04 [9] - For the next fiscal year, three estimates have also moved upwards with no downward revisions, indicating a positive earnings outlook [9] Conclusion - Given the positive momentum indicators and earnings outlook, LASR is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for investors seeking short-term gains [11]

Core Viewpoint - nLight (LASR) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding nLight's earnings prospects, which is expected to positively impact its stock price [2]. - The Zacks Rank system, which categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell), has demonstrated a strong track record, with Zacks 1 stocks averaging a +25% annual return since 2008 [3]. Current-Quarter Estimates - For the current quarter, nLight is projected to earn $0.02 per share, reflecting a year-over-year increase of +125.0% [7]. - The Zacks Consensus Estimate for nLight has risen by 47.62% over the last 30 days, with two estimates increasing and no negative revisions [7]. Current-Year Estimates - For the full year, nLight is expected to earn $0.04 per share, representing a year-over-year change of +106.2% [8]. - The consensus estimate for the current year has increased by 43.21%, with three estimates moving higher and no negative revisions [9]. Zacks Rank - nLight currently holds a Zacks Rank 2 (Buy), indicating promising estimate revisions and a favorable investment outlook [10]. - Research indicates that stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) tend to significantly outperform the S&P 500 [10]. Stock Performance - nLight shares have increased by 40.2% over the past four weeks, suggesting strong investor confidence in the company's earnings growth prospects [11].

Core Viewpoint - nLight (LASR) is positioned as a strong growth stock with recent earnings performance indicating potential for significant breakout opportunities [1] Company Overview - nLight, Inc. specializes in semiconductor and fiber lasers for aerospace, defense, industrial, and microfabrication applications, operating through Laser Products and Advanced Development segments [2] Earnings History - nLight has achieved two consecutive earnings beats against the Zacks Consensus Estimate, with an average positive earnings surprise of 50% over the last year [4] - The latest earnings report showed a profit of $0.06, surpassing the consensus estimate of -$0.09, resulting in a positive earnings surprise of 166% [4] Earnings Estimates Revisions - Earnings estimates for nLight have been revised upward, with the 2025 full-year loss estimate improving from $0.28 to $0.16, and the 2026 estimate improving from $0.21 to $0.10 [5] Growth Projections - Analysts project revenue of $234 million for the current fiscal year, reflecting an 18% growth, with expectations of $245 million for the next fiscal year, indicating a 4.6% growth [6] Valuation Metrics - nLight currently has no forward PE ratio due to ongoing losses, but its price-to-book ratio stands at 6.3x, suggesting potential for growth compared to peer averages [7] - The price-to-sales ratio is also at 6.3x [7] Margin Analysis - Operating margins have improved from -28.1% to -14.7%, indicating a trend towards profitability that could significantly impact stock price once positive margins are achieved [8]

PART I—FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=Item%201.%20Unaudited%20Interim%20Financial%20Statements) Presents unaudited interim consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, equity, cash flows, and notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$295.3 million** from **$270.2 million**, driven by cash, receivables, and inventory; liabilities rose due to a new line of credit Consolidated Balance Sheet Highlights (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :------------------ | | Cash and cash equivalents | $78,812 | $65,829 | | Accounts receivable, net | $44,425 | $34,895 | | Inventory | $48,295 | $40,800 | | Total current assets | $222,863 | $194,089 | | Total assets | $295,254 | $270,241 | | Accounts payable | $18,375 | $15,076 | | Accrued liabilities | $16,312 | $13,268 | | Total current liabilities | $39,559 | $34,235 | | Line of credit | $20,000 | — | | Total liabilities | $79,253 | $53,811 | | Total stockholders' equity | $216,001 | $216,430 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Revenue significantly increased for both the three and six months ended June 30, 2025, with net loss substantially decreasing due to higher gross profit and controlled operating expenses Consolidated Statements of Operations Highlights (in thousands, except per share data) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $61,735 | $50,511 | $113,403 | $95,038 | | Total cost of revenue | $43,278 | $38,661 | $81,147 | $75,700 | | Gross profit | $18,457 | $11,850 | $32,256 | $19,338 | | Total operating expenses | $22,693 | $24,540 | $46,102 | $46,746 | | Loss from operations | $(4,236) | $(12,690) | $(13,846) | $(27,408) | | Net loss | $(3,591) | $(11,729) | $(11,684) | $(25,495) | | Net loss per share, basic and diluted | $(0.07) | $(0.25) | $(0.24) | $(0.54) | [Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss significantly decreased for both periods, driven by a reduced net loss and positive foreign currency translation adjustments Consolidated Statements of Comprehensive Loss Highlights (in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(3,591) | $(11,729) | $(11,684) | $(25,495) | | Foreign currency translation adjustments | $745 | $(65) | $1,071 | $(288) | | Change in unrealized gains on available-for-sale securities | $(4) | $147 | $(729) | $258 | | Comprehensive loss | $(2,850) | $(11,647) | $(11,342) | $(25,525) | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity remained relatively stable, with a slight decrease from December 31, 2024, to June 30, 2025, influenced by net loss, stock-based compensation, and cumulative translation adjustments Consolidated Statements of Stockholders' Equity Highlights (in thousands) | Item | Balance, December 31, 2024 | Balance, June 30, 2025 | | :--------------------------------- | :------------------------- | :--------------------- | | Total stockholders' equity | $216,430 | $216,001 | | Net loss (Six Months Ended June 30, 2025) | — | $(11,684) | | Stock-based compensation (Six Months Ended June 30, 2025) | — | $12,427 | | Cumulative translation adjustment, net of tax (Six Months Ended June 30, 2025) | — | $1,071 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company experienced a net cash outflow from operating activities, but a significant inflow from financing activities, primarily a line of credit draw, led to an overall net increase in cash Consolidated Statements of Cash Flows Highlights (in thousands) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash (used in) provided by operating activities | $(1,405) | $7,145 | | Net cash used in investing activities | $(4,383) | $(8,943) | | Net cash provided by (used in) financing activities | $18,486 | $(1,796) | | Net increase in cash, cash equivalents, and restricted cash | $12,985 | $(3,823) | | Cash, cash equivalents, and restricted cash, end of period | $79,073 | $49,643 | - Proceeds from line of credit for the six months ended June 30, 2025, were **$20.0 million**, compared to **$0** in the prior year[21](index=21&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, revenue, financial instrument fair values, inventory, property, intangible assets, debt, liabilities, warranties, equity, commitments, leases, segment information, and net loss per share [Note 1 - Basis of Presentation and New Accounting Pronouncements](index=11&type=section&id=Note%201%20-%20Basis%20of%20Presentation%20and%20New%20Accounting%20Pronouncements) Unaudited financial statements are prepared under U.S. GAAP; new accounting pronouncements are not expected to materially impact financial position, results, or cash flows, but will require enhanced disclosures - ASU 2023-09 (Improvements to Income Tax Disclosures) is effective for fiscal years beginning after December 15, 2024, requiring enhanced jurisdictional and disaggregated disclosures for effective tax rate reconciliation and income taxes paid, with no material effect on financial position, results, or cash flows expected[24](index=24&type=chunk) - ASU 2024-03 (Disaggregation of Certain Income Statement Expenses) is effective for fiscal years beginning after December 15, 2026, requiring incremental disclosures related to purchases of inventory, team member compensation, and depreciation, with no material effect on financial position, results, or cash flows expected, aside from disclosure changes[25](index=25&type=chunk) [Note 2 - Revenue](index=11&type=section&id=Note%202%20-%20Revenue) Revenue is recognized upon transfer of control, with product sales recognized at a point in time and development revenue over time; Aerospace and Defense revenue grew significantly, while Industrial revenue declined - Revenue from products is recognized at a point in time (shipment or delivery), while development revenue is generally recognized over time using a cost-plus contract structure[31](index=31&type=chunk) Sales by End Market (in thousands) | End Market | Six Months Ended June 30, 2025 | % of Revenue 2025 | Six Months Ended June 30, 2024 | % of Revenue 2024 | | :------------------- | :----------------------------- | :---------------- | :----------------------------- | :---------------- | | Aerospace and Defense | $73,401 | 64.7% | $49,135 | 51.7% | | Industrial | $18,602 | 16.4% | $24,890 | 26.2% | | Microfabrication | $21,400 | 18.9% | $21,013 | 22.1% | | **Total** | **$113,403** | **100.0%** | **$95,038** | **100.0%** | Sales by Timing of Revenue (in thousands) | Timing | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------- | :----------------------------- | :----------------------------- | | Point in time | $76,454 | $63,992 | | Over time | $36,949 | $31,046 | | **Total** | **$113,403** | **$95,038** | [

Company Performance - nLight reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of a loss of $0.09 per share, compared to a loss of $0.10 per share a year ago, representing an earnings surprise of +166.67% [1] - The company posted revenues of $61.74 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 12.11%, and showing an increase from year-ago revenues of $50.51 million [2] - nLight has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates four times during the same period [2] Stock Performance - nLight shares have increased approximately 87.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $54.52 million, and for the current fiscal year, it is -$0.28 on revenues of $215.83 million [7] Industry Outlook - The Electronics - Semiconductors industry, to which nLight belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact nLight's stock performance [5]